Kisan Credit Card (KCC): Short-term agricultural loans at just 4% interest (after government subsidy) — the cheapest borrowing option for Indian farmers.Loan Limit: Up to ₹3 Lakh. Interest Rate: 4% (after subsidy). Cards Issued: 7.5+ Crore. Repayment: Flexible.Kisan Credit Card (KCC) is a credit scheme launched in 1998 that provides farmers with easy and timely access to bank credit for their agricultural needs. Think of it as a special credit card for farmers — you get a pre-approved credit limit (up to ₹3 lakh for most crops) and can withdraw money whenever you need it for seeds, fertilizers, pesticides, harvesting expenses, or even personal needs.
Active SchemeUpdated: March 2026
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Kisan Credit Card (KCC)
Short-term agricultural loans at just 4% interest (after government subsidy) — the cheapest borrowing option for Indian farmers
Loan Limit
Up to ₹3 Lakh
Interest Rate
4% (after subsidy)
Cards Issued
7.5+ Crore
Repayment
Flexible
📖What is Kisan Credit Card (KCC)?
Kisan Credit Card (KCC) is a credit scheme launched in 1998 that provides farmers with easy and timely access to bank credit for their agricultural needs. Think of it as a special credit card for farmers — you get a pre-approved credit limit (up to ₹3 lakh for most crops) and can withdraw money whenever you need it for seeds, fertilizers, pesticides, harvesting expenses, or even personal needs.
The biggest advantage of KCC is the interest rate. The base rate is 7% per annum, but the government provides a 2% interest subvention, bringing it down to 5%. If you repay on time (within the crop season), you get an additional 3% prompt repayment incentive, making the effective interest rate just 4% per annum. This is lower than any personal loan, credit card, or even gold loan rate.
For loans up to ₹1.6 lakh, no collateral is required. For loans between ₹1.6 lakh and ₹3 lakh, the crop grown serves as security. This means farmers can get substantial credit without mortgaging their land or assets.
KCC has been linked with PM Kisan — all PM Kisan beneficiaries are prioritized for KCC applications and banks are mandated to process their applications within 14 days. The government has also extended KCC to allied activities: dairy farming, poultry, fisheries, and shrimp farming, with similar interest benefits.
✅Eligibility
Who can applyIndividual farmers, joint liability groups, tenant farmers, sharecroppers, and SHGs of farmers
Land ownershipOwn or leased land with proper documentation. Tenant farmers need lease agreement or NOC from landowner.
PM Kisan linkPM Kisan beneficiaries get priority processing — apply within 14 days guaranteed
Crop coverageAll crops — kharif, rabi, and horticulture. Also covers: dairy, poultry, fishery, and shrimp farming.
Documents neededAadhaar, PAN card (for loans above ₹1.6L), land records (7/12 extract or equivalent), passport photo, existing loan details (if any)
Where to applyAny commercial bank, regional rural bank, cooperative bank, or small finance bank where you have an account
💰How Interest Subvention Works — You Pay Just 4%
The KCC interest structure is the best deal in Indian banking for farmers. Here's how it breaks down:
Base interest rate: 7% per annum (for loans up to ₹3 lakh)
Government interest subvention: -2% (central government subsidy) → effective rate becomes 5%
Prompt repayment incentive: -3% (additional discount if you repay within the crop season, typically 1 year) → effective rate becomes just 2%
Wait — 2%? Actually, the calculation works slightly differently. The prompt repayment incentive brings the effective rate to 4% (not 2%), because the 3% incentive applies on the base rate of 7%, bringing it to 4%. Some documentation shows 2% + 3% = 5% benefit, making effective rate 2%. The actual rate you pay depends on your bank and specific scheme terms — but it's between 2% and 4%, which is extraordinarily cheap.
Comparison: A personal loan from the same bank would cost you 12-18% interest. A gold loan costs 7-12%. Even a home loan costs 8.5-9.5%. KCC at 4% is by far the cheapest legitimate borrowing option in India.
For loans above ₹3 lakh, the interest subvention does not apply, and the bank charges its normal agricultural lending rate (typically 9-11%).
📝How to Apply for KCC
1
Visit your bank branch
Go to any commercial bank (SBI, PNB, BOB, etc.), regional rural bank, or cooperative bank where you have a savings account. If you're a PM Kisan beneficiary, mention this — you get priority processing.
2
Request KCC application form
Ask for the KCC application form. Fill in your personal details, land details (survey numbers, area under cultivation), crop details (what you plan to grow), and requested credit limit.
3
Submit land and identity documents
Attach: Aadhaar card, land ownership documents (7/12 extract, khatauni, pattadar passbook — varies by state), crop sowing certificate from village officer (if required), PAN card (for limits above ₹1.6 lakh), and passport-size photos.
4
Bank inspects and sanctions
The bank officer may visit your land to verify details. For PM Kisan beneficiaries, this process is expedited. The bank sets your credit limit based on the scale of finance for your district (published by NABARD). Typical limits: ₹50,000 to ₹3 lakh depending on land area and crops.
5
Receive KCC and RuPay card
Once sanctioned, you get a KCC account with a RuPay debit card. You can withdraw money from ATMs or bank branches up to your sanctioned limit. The card is valid for 5 years (renewed after assessment). Use the money for seeds, fertilizers, hiring labor, harvesting, or any agricultural purpose.
🐄KCC for Dairy, Poultry, and Fisheries
In 2019, the government extended KCC benefits to allied activities beyond crop farming:
Dairy KCC: For farmers owning milch cattle. Credit limit based on number of animals — typically ₹40,000 per cow/buffalo. A farmer with 5 cows can get up to ₹2 lakh KCC for dairy needs (feed, veterinary expenses, equipment).
Poultry KCC: For poultry farmers. Credit limit based on batch size — typically ₹2-3 per bird for layer farming and higher for broiler. A 10,000-bird layer farm can get ₹50,000-80,000 KCC.
Fisheries KCC: For fishermen and fish farmers (inland and marine). Credit limit based on fishing vessel, pond area, or cage culture capacity.
Shrimp farming KCC: For shrimp and prawn culturists. Credit based on pond area and production capacity.
The same 4% interest rate applies to all allied activity KCC loans up to ₹3 lakh. Apply at any bank — the process is similar to crop KCC.
📝How to Apply
1
Visit any bank with land/activity documents
Carry Aadhaar, land records (for crop KCC) or animal ownership proof (for dairy KCC), and bank passbook.
2
Fill KCC application form
Specify crops/activity, land area, and requested credit limit.
3
Bank verifies and sanctions within 14 days
PM Kisan beneficiaries get priority. Bank may inspect land/farm.
4
Start using KCC RuPay card
Withdraw as needed, repay within crop season for 4% interest rate. Card valid for 5 years.
⚠️Always repay KCC loan within the crop season (usually 1 year from drawdown) to avail the 4% interest rate. If you delay beyond the crop season, you lose the prompt repayment incentive and pay 7% or more. Set reminders for repayment deadlines.
📅Important Dates & Schedule
ApplicationOpen throughout the year at all banks
KCC validity5 years (renewal after re-assessment)
Repayment deadlineWithin crop season (typically 12 months from drawdown)
Interest subventionValid for crop loans up to ₹3 lakh only
❓Frequently Asked Questions
🔗Related Schemes
Agriculture
PM Kisan Samman Nidhi
InsurancePM Fasal Bima Yojana
BusinessPM Mudra Yojana
PensionAtal Pension Yojana
PM Kisan Portal (KCC Section)
pmkisan.gov.in